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vova2212 [387]
3 years ago
6

If interest rate parity holds and the annual Taiwan nominal interest rate is 7% and the US. annual nominal rate is 5% and real i

nterest rates are 2% in both countries, then inflation in Taiwan is about than in the U.S. O 1 % lower O 2% lower O 2% higher O 1 % higher
Business
1 answer:
Sati [7]3 years ago
7 0

Answer:

2% higher

Explanation:

Nominal rate = real rate + inflation

In the U.S:

5\%=2\%+inflation\\inflation = 3\%

In Taiwan:

7\%=2\%+inflation\\inflation = 5\%

The difference between inflations is:

I_T - I_{US} = 5\%-3\% = 2\%

Therefore, then inflation in Taiwan is about 2% higher than in the U.S.

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The nominal rate of return on these bonds is 5%

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The correct answer to this open question is the following.

Unfortunately, it seems that something is missing here. "Progressivism, where will you put your million dollars answers?" is the section of the examination, but it is not a specif question.

So what is what you want to know?

However, trying to offer some help, we can comment on the following.

Progressivism was the period in the history of the United States during the end of the 1800s and the beginning of the 1900s, in which many social leaders demanded changes to the consequences of the industrial era and exposed the ways fabrics and industries exploited workers and children. It also was a time when "muckraker" journalists exposed the corruption of the federal government. It was a true time of changes in America.

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During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pr
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Answer:

Fixed costs= 1,100,000

Explanation:

Giving the following information:

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.

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